Driving Green Innovation for Sustainable Manufacturing: The Roles of Dynamic Capabilities, Green Core Competence, and Green Organizational Culture

Abstract

This study examines how firms convert dynamic capabilities into green innovation (GI) by developing green core competence (GCC). Drawing on resource-based theory and dynamic capability theory and incorporating core competence logic, the study investigates the direct effects of absorptive capacity (AC) and technological capability (TC) on GI, the mediating role of GCC, and the moderating role of green organizational culture (GOC) in the capability-to-competence process. Survey data were collected from 324 managers in China’s electronic information manufacturing industry, a technology-intensive sector facing pressures for technological upgrading and environmental improvement. Partial least squares structural equation modeling was used to test the proposed mediation and moderation model. The results show that AC and TC both positively affect GI and GCC, while TC has stronger effects. GCC positively affects GI and partially mediates the relationships between AC and GI and between TC and GI. GOC further strengthens the positive effects of AC and TC on GCC. These findings suggest that GI depends not only on the possession of dynamic capabilities but also on their conversion into a green-specific competence base. The study offers a contextualized explanation of how technology-intensive manufacturing firms organize internal capabilities to support sustainable manufacturing practices.